The leader multipurpose shopping location problem

Armin Lüer-Villagra, Vladimir Marianov, H. A. Eiselt, Gonzalo Méndez-Vogel

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

This paper extends the follower's retail store location problem of Marianov et al. (2018) to include the leader's decisions. The leader locates its stores knowing that a follower will enter the market later offering a different product. Both maximize their markets given that customers can purchase none, one or two non-essential products on the same trip. The paper determines the best locations for a first and a second entrants through exact and approximated procedures. It turns out that, by locating with foresight, a first entrant can increase the total business in an area for himself and subsequent entrants. We solve the binary programming bi-level resulting problem for small instances by adapting an ad-hoc procedure. Furthermore, a new bi-level reactive GRASP procedure finds solutions for instances of up to 100 nodes in under 3,600 s of CPU time.

Original languageEnglish
JournalEuropean Journal of Operational Research
DOIs
Publication statusAccepted/In press - 2022

Keywords

  • Consumer choice
  • Leader's problem
  • Location
  • Multipurpose shopping

ASJC Scopus subject areas

  • Computer Science(all)
  • Modelling and Simulation
  • Management Science and Operations Research
  • Information Systems and Management

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